The PAL program is a partnership between the Army and private industry to improve the condition of on-post lodging facilities and provide for their long-term sustainment.

Privatization under the PAL initiative gives the Army the ability to leverage private sector capital and best business practices, providing quality facilities today that will be sustained throughout the next 50 years

Working together, we can make a difference in the lives of thousands of Soldiers and families each year!

Why Privatize?

Of the almost 17,000 hotel rooms initially operated by the Army in the continental United States, Alaska, Hawaii and Puerto Rico, more than 80% were in need of replacement or major renovation. The cost for this revitalization was close to $1B and the Army estimated that it would take in excess of 20 years to bring the inventory up to an adequate standard through conventional appropriation channels. Additionally, the internal Army plan for revitalization did not provide for adequate reinvestment in lodging facilities over time. The Army's inability to sustain its lodging inventory reinforced the Army leadership's position that owning, operating and maintaining lodging facilities was not a core function of the Army.

PAL Goals

Improve the quality of transient lodging facilities throughout the continental United States, Alaska, Hawaii and Puerto Rico, supporting soldiers and the Families by privatizing the lodging function

PAL Objectives

Improve quality of life for Soldiers and their Families

Use of private sector capital and best practices

Overcome $1B+ revitalization backlog

Provide for long-term sustainment of the facilities

Capitalize on success of a proven initiative

Transfer a non-core function

Offer rooms across the privatized portfolio at a weighted cost of 75% of the prevailing lodging per diem

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